{"id":75645,"date":"2018-01-03T01:36:54","date_gmt":"2018-01-02T18:36:54","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/the-middle-class-who-got-rich-on-peps-and-isas-letters\/"},"modified":"2018-01-03T03:03:16","modified_gmt":"2018-01-02T20:03:16","slug":"the-middle-class-who-got-rich-on-peps-and-isas-letters","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/the-middle-class-who-got-rich-on-peps-and-isas-letters\/","title":{"rendered":"The middle class who got rich on Peps and Isas | Letters"},"content":{"rendered":"


\nAnyone who has taken up the Pep and then the Isa every year from 1988 will have accumulated a completely tax-free investment portfolio of \u00a3508,000, writes Tom BrownYour year-end editorial exploring the iniquities of a society increasingly characterised by a growing new class of rentiers is timely (Redistribute the gains now hoarded by owners of capital, 30 December) but fails to name a single concrete measure that will effectively halt and reverse the trend. In this you are far from alone, as even John McDonnell shows not the slightest sign of grasping how the UK tax system has been stealthily tilted to create a tax haven for owners of capital under the falsehoods of \u201cencouraging saving\u201d and \u201ctaking the low paid out of tax\u201d.Here is how it works: anyone who has taken up the annual personal equity plan (Pep) and then individual savings account (Isa) allowance every year from its inception under Nigel Lawson at \u00a32,400 in 1988 to \u00a320,000 under Philip Hammond today will have accumulated, assuming an extremely conservative average total return of 5% pa, a completely tax-free investment portfolio of \u00a3508,000 today, which will yield an annual tax-free income of over \u00a325,000 pa without having put any of this capital at substantial risk of loss through real risk capital investment in start-up businesses or volatile emerging markets. When combined with a personal allowance of \u00a311,500 and a standard rate of tax on taxable income up to \u00a333,500, this means it is easy for a middle-class taxpayer in their late 50s to enjoy a gross income, all from onshore and legitimate sources, exceeding \u00a3100,000 pa and still not even incur an effective 20% tax rate on total income. To add to this feather-bedded luxury, the same taxpayer is likely to have benefited from tax relief on occupational pension contributions \u2013 despite the middle-class squeals of having been robbed of higher pensions by the taxman and pension fund managers \u2013 and can not only pass on windfall gains on property largely tax-free to children, but unspent tax-sheltered pension pots too. Continue reading…
\n
\nSource : theguardian.com
\nRead more…The middle class who got rich on Peps and Isas | Letters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Anyone who has taken up the Pep and then the Isa every year from 1988...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-75645","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-jG5","jetpack-related-posts":[{"id":104379,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/prime-minister-jacinda-ardern-says-farmers-and-small-business-owners-will-be-top-of-mind-when-making-capital-gains-tax-decisions\/","url_meta":{"origin":75645,"position":0},"title":"Prime Minister Jacinda Ardern says farmers and small business owners will be top of mind when making capital gains tax decisions","date":"February 25, 2019","format":false,"excerpt":"\r Prime Minister Jacinda Ardern has said small business owners and farmers would be at the top of her mind when it comes to making final decision on a capital gains tax in the next two months.\"Small businesses and farming are crucial...\r \r Source : nzherald.co.nz\/Property\r Read more...Prime Minister Jacinda\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":147420,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/reeves-to-leave-capital-gains-tax-on-property-untouched-reports-say\/","url_meta":{"origin":75645,"position":1},"title":"Reeves to leave capital gains tax on property untouched, reports say","date":"October 17, 2024","format":false,"excerpt":"\r Fears among landlords and second home owners that tax would rise in budget said to be unfoundedUK politics live \u2013 latest updatesMillionaire business owners urge Reeves to raise \u00a314bn from rise in capital gains taxRachel Reeves will not change the rate of capital gains tax on the sale of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":119363,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/treasury-enjoys-boost-in-capital-gains-tax-receipts\/","url_meta":{"origin":75645,"position":2},"title":"Treasury enjoys boost in capital gains tax receipts","date":"November 27, 2020","format":false,"excerpt":"\r Tax take hits \u00a372m in October as business owners sell assets\r \r Source : ft.com\r Read more...Treasury enjoys boost in capital gains tax receipts","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":64366,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/why-a-capital-gains-tax-should-capture-the-family-home\/","url_meta":{"origin":75645,"position":3},"title":"Why a capital gains tax should capture the family home","date":"August 23, 2017","format":false,"excerpt":"\r By Mark Lister A capital gains tax is back on the agenda by the sound of it, if we see a change of government. This should worry property owners more than share investors, as they probably have more to lose.Shares are misunderstood...\r \r Source : nzherald.co.nz\/Property\r Read more...Why a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":143010,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/holiday-home-owners-in-the-uk-are-you-planning-to-sell-up-or-switch-to-long-term-letting\/","url_meta":{"origin":75645,"position":4},"title":"Holiday home owners in the UK: are you planning to sell up or switch to long-term letting?","date":"March 13, 2024","format":false,"excerpt":"\r We\u2019re interested to hear from British owners of furnished holiday lettings about their plans amid higher interest rates and the loss of tax reliefThousands of UK owners of holiday homes will lose a major tax break as a result of changes announced by chancellor Jeremy Hunt in the spring\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":62589,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/south-korea-looks-to-cool-property-market-with-tax-rise\/","url_meta":{"origin":75645,"position":5},"title":"South Korea looks to cool property market with tax rise","date":"August 2, 2017","format":false,"excerpt":"\r Seoul boosts capital gains levy on owners of multiple homes and tightens lending rules\r \r Source : ft.com\r Read more...South Korea looks to cool property market with tax rise","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/75645"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=75645"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/75645\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=75645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=75645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=75645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}